PSU Stock Surges 430% from IPO Price in Less Than 2 Months: Find Out More Here

The Indian Renewable Energy Development Agency (IREDA), which was recently listed on the stock exchange, has seen a remarkable surge in its stock price, providing early investors with an exceptional return on their investment in less than two months since its IPO.
Retail investors who were allocated shares in the initial public offering have seen substantial growth in their wealth, as IREDA has become one of the top-performing stocks in a short period of time. The stock debuted on Indian exchanges on November 29, 2023, at ₹60 per share, representing an 87.5% premium over the issue price of ₹32. Since its listing, the stock has consistently risen and has not dropped below its listing price.
In today’s trading session, the stock reached a record high of ₹169.80 per share, marking its fifth consecutive day of gains. With the current market price at ₹169.80, the stock has surged by an impressive 430.6% from its IPO price and 183% from its listing price. In December, the stock advanced 57.4%, and in the current month, it is up by 65%. As a result of its strong performance, the stock has secured the top position in the S&P BSE IPO index.
In terms of financials, IREDA reported a 67% increase in net profit to ₹335.54 crore in Q3FY24, driven by consistent growth in the loan book and a significant reduction in net non-performing assets (NPAs) to 1.52% in Q3 FY24 from 2.03% in Q3 FY23. The company’s revenue from operations also surged to ₹1,253.19 crore in the third quarter of the current fiscal year from ₹868.97 crore in Q3 FY23.
IREDA provides innovative financing in renewable energy and energy efficiency, conservation, and environmental technologies. It is a wholly owned Government of India enterprise under the administration of the Ministry of New and Renewable Energy (MNRE). The company has the largest share of credit towards the renewable energy sector among power financing NBFCs.
The outlook for India’s renewable energy sector is promising, with major policy announcements and ambitious targets. India aims to elevate its non-fossil energy capacity to 500 GW by 2030.
Investors are advised to consult with certified experts before making any investment decisions.